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5 things to know before the stock market opens on Friday, December 2

December 2, 2022
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A GE AC4400CW diesel-electric locomotive in Union Pacific livery ahead of a possible strike unless an agreement is reached with the railroad unions as a Metrolink commuter train (right) arrives at Union Station in Los Angeles, California on September 15. , 2022.

Bing Guan | Reuters

Here are the most important news investors need to start their trading day:

1. Senate approves railroad deal

Senate Thursday passed legislation to enforce the railroad labor agreement, sending the bill to President Joe Biden for signature before the strike deadline. The agreement provides for an increase in railway workers’ wages, lump-sum payments and one additional day of paid leave. But that doesn’t guarantee workers paid sick leave – which worries unions most – after the Senate voted against a separate House-approved resolution to include seven days of paid sick leave in the agreement. Biden called for an early approval of the agreement to avoid the economic fallout from the railroad strike.

2. Preliminary work report

The monthly job report comes out at 8:30 AM ET on Friday morning and economy is expected to slow down. Dow Jones estimates the US will add 200,000 jobs, down from the 261,000 added in October. Economists also expect the unemployment rate to remain stable at 3.7% and average wage growth to slow month on month. The report, closely followed every month, is in the spotlight this time around as the Federal Reserve looks to ease its rate hikes to fight inflation.

3. Markets digest data

Traders on the NYSE floor, December 1, 2022

Source: New York Stock Exchange.

Stocks ended mostly lower on Thursday amid mixed economic data, with the Personal Consumer Expenditure report coming in slightly better than expected, but the ISM manufacturing index showing a larger-than-expected decline. “Combined, these two indicators could indicate a soft landing in the US economy until growth slows even more,” said Chris Hussey of Goldman Sachs. On Thursday, the Dow lost nearly 195 points and the S&P 500 fell 0.09%. The technological Nasdaq Composite has grown a bit. To follow live market updates here.

4. SCOTUS takes on student debt

Student debt borrowers demand that President Biden write off student loan debt during a demonstration outside the White House.

Getty images | Paul Morigi

The Supreme Court said it would hear arguments in a case against Biden’s plan to write off some of student debt, rekindling hope for millions of borrowers. Last month, a federal appeals court issued an injunction against the plan, which for many will write off up to $20,000 in student debt, in response to a six-state Republican-led challenge. Oral debate is scheduled for February, but for now the plan remains in force.

5. Putin is open to negotiations

Russian President Vladimir Putin at a meeting with mothers of Russian servicemen participating in the Russian-Ukrainian conflict on the eve of Mother’s Day at the Novo-Ogaryovo state residence near Moscow, Russia, November 25, 2022.

Alexander Shcherbak | Satellite | Reuters

Russian President Vladimir Putin is Open for talks on a possible resolution to the war in Ukraine, Kremlin spokesman Dmitry Peskov said. US President Joe Biden said on Thursday that he was ready to meet with Putin if Putin was ready to end the war, but did not express confidence that this would happen anytime soon. “I am ready to talk to Mr. Putin if he is really interested in deciding that he is looking for a way to end the war. He hasn’t done it yet,” Biden said.

— CNBC’s Lori Ann LaRocco, Dan Mangan, Patti Domm, Emma Keenery, and Tana Machil contributed to this report.

— Follow the wider market action like a pro on CNNBC Pro.


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December 2, 2022
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